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What does agribusiness think of Brexit delay?
Brexit has been postponed to Thursday, October 31, according to Wednesday, April 10. That decision was not without controversy among the heads of government in the European Union. How do different agribusiness companies view this decision?
Livestock feed company ForFarmers reports the changes in the brexit to wait quietly. "During this period of great uncertainty, we are trying to keep in touch with our customers as much as possible and give them the best advice," said a company spokesperson. "We do think that in the short term we will experience hindrance in the import and export of our products."
On the other hand, ForFarmers has a clear advantage, because it has a lot of production capacity in Great Britain. This ensures, among other things, that trade with mainland Europe is limited.
'Little changes'
Zuivelcoöperatie FrieslandCampina let it be known that they expect little change. According to a spokesperson for the dairy cooperative, the processor will continue with the preparations that had been started. In particular, this includes making agreements with customers and customs.
FrieslandCampina also benefits from a so-called 'soft Brexit'. This is because the company has no production facilities in the United Kingdom. Clear trade agreements must therefore be made to ensure that the export of its dairy products continues to run smoothly.
Also the spokesperson of the meat group Vion indicates that the postponement of Brexit will have little impact on the operations of the slaughterhouse. The group also reports that it does not produce pork in the United Kingdom. "However, we do export a lot of bacon to the country; about 5.000 tons of bacon go from the Netherlands to the United Kingdom every week."
'Taking advantage of Brexit'
It is striking that, in the long term, ForFarmers is correct benefit expected to get out of Brexit. The pig sector in the United Kingdom is about 40% dependent on imports. "That is why it is expected that pig farmers in the country will scale up, and we as a feed group can benefit from that again," the spokesperson said. Yoram Knoop, the CEO of ForFarmers, also hinted at this by saying that he expects to benefit of a hard Brexit.
At Vion, they do not expect Brexit to bring many changes in the long term. "We have already taken various measures to ensure that this also runs smoothly after Brexit. For example, we are busy arranging customs formalities. However, for now it is mainly business as usual," said the spokesperson. from the slaughterhouse.
Tim Roetman
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